86R8054 GRM-D
By: Hinojosa S.B. No. 1869
A BILL TO BE ENTITLED
AN ACT
relating to a franchise tax credit for taxable entities that employ
persons with disabilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 171, Tax Code, is amended by adding
Subchapter K-1 to read as follows:
SUBCHAPTER K-1. TAX CREDIT FOR WAGES PAID TO PERSONS WITH
DISABILITIES
Sec. 171.571. DEFINITION. In this subchapter, "person with
a disability" means a person who, at the time of being hired, has a
disability as defined by 42 U.S.C. Section 12102.
Sec. 171.572. ENTITLEMENT TO CREDIT. A taxable entity is
entitled to a credit in the amount and under the conditions provided
by this subchapter against the tax imposed under this chapter.
Sec. 171.573. QUALIFICATION. A taxable entity qualifies
for a credit under this subchapter for wages paid to each person
with a disability who is employed by the taxable entity in a
position that is located or based in this state.
Sec. 171.574. AMOUNT; LIMITATIONS. (a) Subject to
Subsection (b), the amount of the credit for a report in connection
with each employee described by Section 171.573 is equal to the
lesser of:
(1) 50 percent of the wages paid by the taxable entity
to the employee; or
(2) $7,500.
(b) The total amount of the credit for each report is equal
to the lesser of:
(1) the total of the credits allowed under Subsection
(a) for the reporting period for all employees described by Section
171.573; or
(2) the amount of franchise tax due after applying all
other applicable credits.
Sec. 171.575. APPLICATION FOR CREDIT. (a) A taxable entity
must apply for a credit under this subchapter on or with the tax
report for the period for which the credit is claimed.
(b) The comptroller shall promulgate a form for the
application for the credit. A taxable entity must use the form in
applying for the credit.
Sec. 171.576. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
taxable entity may claim a credit under this subchapter for a report
only in connection with wages paid during the accounting period on
which the report is based.
Sec. 171.577. RULES. The comptroller shall adopt rules
regarding the manner by which a taxable entity may demonstrate that
an employee is a person with a disability for purposes of this
subchapter.
SECTION 2. A taxable entity may claim the credit under
Subchapter K-1, Chapter 171, Tax Code, as added by this Act, only
for wages paid on or after the effective date of this Act and only on
a franchise tax report originally due under Chapter 171, Tax Code,
on or after that date.
SECTION 3. This Act takes effect January 1, 2020.